August retail inflation hits 20-month high of 4.8%
Retail inflation measured by the Consumer Price Index (CPI) rose to a 20-month high of 4.8% in August, driven mainly by rising food prices. Economists said the print raises the chances that the Reserve Bank of India will opt for a rate hike at its October review, as price pressures build across both retail and wholesale baskets.
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CPI is the RBI's headline inflation target and shapes rate decisions.
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- August CPI retail inflation rose to a 20-month high of 4.8%.
- Rising food prices were the main driver.
- Economists see higher odds of an RBI rate hike in October.
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